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NEW DELHI, Jan. 31

BUOYANT revenue collections have enabled the Centre to restrict its fiscal deficit for April-December 2002 to Rs 86,269 crore, as against Rs 89,014 crore during the corresponding nine months of the previous fiscal.

Moreover, the fiscal deficit for April-December 2002 is 63.7 per cent of the budget estimate of Rs 1,35,524 crore for the entire 2002-03 fiscal (April-March), compared to the previous fiscal's corresponding coverage of 76.5 per cent.

While the revenue deficit for April-December 2002, at Rs 68,018 crore, is marginally higher than the Rs 66,559 crore figure for April-December 2001, the former is only 71.3 per cent of the budget estimate of Rs 91,733 crore for the whole of 2002-03 against the previous year's corresponding ratio of 84.4 per cent.

In other words, the Centre seems to be in much better control of its finances this fiscal and it is unlikely to overshoot the budgeted deficit targets. This is notwithstanding higher allocations towards drought relief and shortfall in realisations from disinvestment (Rs 3,122 crore against target of Rs 12,000 crore).

The main reason for the improved fiscal performance is buoyant revenue collections, with the net tax receipts for April-December 2002, at Rs 1,03,844 crore, being almost Rs 19,000 crore, higher than the previous year's corresponding level of Rs 84,996 crore.

While non-tax revenues have fallen from Rs 47,694 crore to Rs 46,644 crore, receipts through recovery of loans and other non-debt receipts (i.e., disinvestment) have risen from Rs 11,734 crore to Rs 15,618 crore and from Rs 280 crore to Rs 3,122 crore.

The Centre's total receipts (revenue plus non-debt capital) have been higher by Rs 24,524 crore - from Rs 1,44,704 crore for April-December 2001 to Rs 1,44,704 crore for April-December 2002.

This increase has more than offset the Rs 21,779 crore jump in total expenditures - from Rs 2,33,718 crore to Rs 2,55,497 crore - leading to the lower fiscal deficit during the first three quarters of the current fiscal. While the Centre's Plan expenditure has gone up from Rs 61,940 crore during April-December 2001 to Rs 64,472 crore during April-December 2002, the increase has been more in the case of non-Plan spending (from Rs 1,71,778 crore to Rs 1,91,025 crore).

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